,,ii #aaith ,,congress #b;d ,session ,s4 #djaf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #e1 #bjbf,mr4 ,lankford 7for himself1 ,mr4 ,crapo1 ,mr4 ,cassidy1 and ,mr4 ,daines7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend title ,,iii of the ,social ,security ,act and the ,federal ,unemployment ,tax ,act to require identity verification procedures and data matching1 to prevent unemployment fraud1 and to strengthen work search requirements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,unemployment ,fraud ,act4 #b4 ,verification of applicant identity 7a7 ,in general ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 is amended by adding at the end the following3 7n7 7#a7 ,the ,state agency charged with the administration of the ,state law shall certify that the ,state has procedures in place to verify the identity of claimants of unemployment compensation1 including requiring the claimant to provide documentation of their identity1 which shall consist of-- 7,a7 at least one currently valid ,federal or ,state government-issued identification document2 and 7,b7 one or more supporting documents1 which may include utility bills1 lease agreements1 voter registration cards1 vehicle registration1 insurance documents1 or other reliable documents1 so long as such documents are-- 7i7 determined by the ,state to be sufficient to verify the identity of the claimant2 or 7ii7 approved by the ,secretary for such purpose4 7#b7 ,not later than #ab months after the date of enactment of this subsection1 the ,secretary of ,labor shall promulgate regulations governing identity verification procedures for claimants of unemployment compensation used by ,state agencies4 ,such regulations shall-- 7,a7 take into account-- 7i7 administrative costs1 including for technology and cybersecurity systems2 and 7ii7 any other factors the ,secretary determines appropriate2 7,b7 provide due process protections for claimants2 7,c7 specify methods to ensure that the documentation required under paragraph 7#a77;,a7-- 7i7 is accurate1 current1 and reliable2 and 7ii7 does not produce systematic mismatches that unfairly deny or delay the payment of unemployment compensation2 7,d7 require safeguards to ensure that the procedures-- 7i7 minimize false positive or negative rates2 7ii7 do not result in the flagging1 denial1 or delay of claims based on the personal characteristics of an individual1 including race1 color1 religion1 sex1 national origin1 age1 disability1 or political affiliation or belief2 and 7iii7 comply with applicable civil rights laws2 7,e7 require that such procedures comply with best practices for privacy and cybersecurity1 as determined by the ,secretary of ,labor2 7,f7 any other factors the ,secretary determines appropriate2 and 7,g7 include any other provisions necessary to ensure the proper implementation1 oversight1 and continuous improvement of data-matching practices under this subsection4 7#c7 ,in this subsection1 the term unemployment compensation has the meaning given the term in subsection 7d77#b77;,a74 4 7b7 ,effective date ,the amendments made by this ,act shall apply1 with respect to a ,state1 to initial applications for unemployment compensation received by such ,state on or after the date that is #b years after the date of enactment of this ,act4 #c4 ,preventing unemployment compensation fraud through data matching 7a7 ,in general ,section #ccjd of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subsection 7f7 as subsection 7g72 and 7#b7 by inserting after subsection 7e7 the following3 7f7 ,preventing unemployment compensation fraud through data matching ,as a condition of eligibility of a ,state to implement the exceptions to the withdrawal standard described in subparagraphs 7,h7 and 7,i7 of subsection 7a77#d71 the ,state shall certify to the ,secretary of ,labor each of the following3 7#a7 ,integrity data hub ,the ,state uses the system designated by the ,secretary of ,labor 7or another system at the discretion of the ,state7 for cross-matching claimants of unemployment compensation to prevent and detect fraud and improper payments4 7#b7 ,use of fraud prevention and detection ,the ,state has established procedures to do the following3 7,a7 ,national directory of new hires ,use the ,national ,directory of ,new ,hires established under section #dec7;i7 of the ,social ,security ,act-- 7i7 to compare information in such ,directory against information about claimants of unemployment compensation to identify any such individuals who may have become employed2 7ii7 to take timely action to verify whether the individuals identified pursuant to subparagraph 7,a7 are employed2 and 7iii7 upon making a verification described in clause 7ii71 to take appropriate action to deny or reduce unemployment compensation payments1 and to initiate recovery of any overpayments that have been made4 7,b7 ,state information data exchange system ,use the ,state ,information ,data ,exchange ,system 7or another system at the discretion of the ,state7 to facilitate employer responses to request for information from the ,state workforce agencies4 7,c7 ,incarcerated individuals ,request information from the ,commissioner of ,social ,security under sections #bjb7x77#c77;,b77iv7 and #afaa7;e77#a77;,i77iii7 of the ,social ,security ,act1 or from such other sources as the ,state agency determines appropriate1 to obtain the information necessary to carry out the provisions of a ,state law under which an individual who is confined in a jail1 prison1 or other penal institution or correctional facility is ineligible for unemployment compensation on account of such individuals inability to satisfy the requirement under section #cjc7;a77#ab7 of such ,act4 7,d7 ,deceased individuals ,compare information of individuals claiming unemployment compensation against the information regarding deceased individuals furnished to or maintained by the ,commissioner of ,social ,security under section #bje7r7 of the ,social ,security ,act4 4 #d4 ,stopping the pay and chase model2 prohibition on self-attestation 7a7 ,payments due when eligibility is confirmed ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 is amended-- 7#a7 in subsection 7a77#a71 by inserting 7as described in subsection 7n77 after when due2 and 7#b7 by adding at the end the following3 7o7 7#a7 ,when payments are due ,for the purposes of subsection 7a77#a71 a payment is due on the date that an individual has established eligibility for a benefit year or period1 filed a weekly claim for unemployment compensation 7as defined in subsection 7d77#b77;,a771 and has been determined to have met the requirements of weekly eligibility described in paragraphs 7#aj7 and 7#ab7 of subsection 7a71 and any additional requirements pursuant to ,state law4 ,such a payment shall be made to the individual after payment is due1 and such a payment shall not be made prior to the determination that an individual is eligible to receive such payment1 including through the identification verification required under subsection 7n77#a74 7#b7 ,promulgation of regulation ,not later than #ahj days after the date of enactment of the ,stop ,unemployment ,fraud ,act1 the ,secretary of ,labor shall promulgate a regulation1 for the purposes of carrying out paragraph 7#a71 that establishes maximum time frames for benefit payment following an initial eligibility determination1 including standards for periods in which there is a high volume of claims4 4 7b7 ,self-,attestation prohibition ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 is further amended by adding at the end the following3 7p7 ,self-,attestation prohibition ,for the purpose of determining whether a claimant is eligible for unemployment compensation 7as defined under subsection 7d77#b77;,a77 for any week1 a claimant's self-attestation or self-certification shall not be sufficient on its own to prove the claimant is eligible for such compensation4 4 7c7 ,effective date ,the amendments made by this section shall apply to certifications for payment made after the date that is #b years after the date of enactment of this ,act4 #e4 ,secretarial monitoring ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 is further amended by adding at the end the following3 7q7 ,monitoring required 7#a7 ,in general ,the ,secretary of ,labor shall monitor each ,state's compliance with subsection 7r74 7#b7 ,withholding of funds ,in the case that the ,secretary identifies a ,state that is not in compliance with subsection 7n7 or 7o71 the ,secretary may1 after reasonable notice and hearing-- 7,a7 withhold #e percent of the funds appropriated pursuant to section #ija7;c77#a77;,a7 for such ,state2 and 7,b7 implement for the ,state a corrective action plan to bring the ,state into compliance with such subsections4 4 #f4 ,strengthening work search requirements 7a7 ,in general ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77#ab77 is further amended-- 7#a7 in subsection 7a77#ab71 by striking and actively and inserting and1 subject to subsection 7r71 actively2 and 7#b7 by adding at the end the following3 7r7 7#a7 ,actively seeking work ,for the purposes of subsection 7a77#ab71 subject to paragraph 7#b71 a claimant of unemployment compensation 7as defined in subsection 7d77#b77;,a77 shall only be considered to be actively seeking work if the individual-- 7,a7 is registered for employment services in such a manner and to such extent as prescribed by the ,state agency2 7,b7 maintains a record of such work search1 including employers contacted1 method of contact1 and date contacted2 and 7,c7 provides such record to the ,state agency each week the individual receives unemployment benefits4 7#b7 ,verification of work search record ,the ,state shall verify the work search records received pursuant to paragraph 7#a77;,c74 7#c7 ,regulation ,not later than #f months after the date of enactment of the ,stop ,unemployment ,fraud ,act1 the ,secretary shall issue guidance outlining standards for-- 7,a7 employment service registration2 and 7,b7 verifying work search records4 4 7b7 ,effective date ,the amendments made by this section shall apply to claimants who receive regular unemployment compensation beginning on the date that is #b years after the date of enactment of this ,act4 #g4 ,permissible uses of unemployment fund for program administration 7a7 ,withdrawal standard in the ,internal ,revenue ,code ,section #ccjd7;a77#d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subparagraph 7,f71 by striking and after the semicolon2 7#b7 in subparagraph 7,g71 by adding and at the end2 and 7#c7 by adding at the end the following3 7,h7 provided the certifications made by the ,state as described in section #ccjd7;f7 of the ,internal ,revenue ,code of #aihf are in effect at the time of approval of the ,state law under this subsection1 an amount1 not to exceed #e percent1 of any overpayment of compensation recovered by the ,state 7other than an overpayment made as the result of agency error7 may1 immediately following the ,state's receipt of such recovered amount1 be deposited in a ,state fund from which money may be used for-- 7#a7 the payment of costs of deterring1 detecting1 and preventing improper payments2 7#b7 purposes related to the proper classification of individuals as being in employment 7as defined in section #ccjf7;c7 of the ,internal ,revenue ,code of #aihf71 an independent contract1 or as an employer 7as defined in section #ccjf7;a7 of such ,code71 and the provisions of ,state law implementing section #cjc7k7 of the ,social ,security ,act2 7#c7 the payment to the ,secretary of the ,treasury to the credit of the account of the ,state in the ,unemployment ,trust ,fund2 7#d7 modernizing the ,state's unemployment insurance technology infrastructure2 or 7#e7 otherwise assisting the ,state in improving the timely and accurate administration of the ,state's unemployment compensation law2 and 7,i7 provided the certifications made by the ,state as described in section #d of the ,stop ,unemployment ,fraud ,act are in effect at the time of approval of the ,state law under this subsection1 an amount1 not to exceed #e percent1 of any payments of contributions1 or payments in lieu of contributions1 that are collected as a result of an investigation and assessment by the ,state agency may1 immediately following receipt of such payments1 be deposited in a ,state fund from which moneys may be withdrawn for the purposes specified in subparagraph 7,h74 4 7b7 ,definition of unemployment fund ,section #ccjf7;f7 of the ,internal ,revenue ,code of #aihf is amended by striking and for refunds of sums and all that follows and inserting the following3 1 except as otherwise provided in section #ccjd7;a77#d71 section #cjc7;a77#e7 of the ,social ,security ,act1 or any other provision of ,federal unemployment compensation law44 7c7 ,withdrawal standard in ,social ,security ,act ,section #cjc7;a77#e7 of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77#e77 is amended by striking and for refunds of sums and all that follows and inserting the following3 except as otherwise provided in this section1 section #ccjd7;a77#d7 of the ,internal ,revenue ,code of #aihf1 or any other provisions of ,federal unemployment compensation law2 and4 7d7 ,immediate deposit requirements in the ,internal ,revenue ,code ,section #ccjd7;a77#c7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#c7 all money received in the unemployment fund shall immediately upon receipt be paid over to the ,secretary of the ,treasury to the credit of the ,unemployment ,trust ,fund established under section #ijd of the ,social ,security ,act 7#db ,u4,s4,c4 #aajd71 except for-- 7,a7 refunds of sums improperly paid into such fund2 7,b7 refunds paid in accordance with the provisions of section #ccje7;b72 and 7,c7 amounts deposited in a ,state fund in accordance with subparagraph 7,h7 or 7,i7 of paragraph 7#d72 4 7e7 ,immediate deposit requirement in ,social ,security ,act ,section #cjc7;a77#d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77#d77 is amended by striking 7except for refunds of sums erroneously paid into such fund and except for refunds paid in accordance with the provisions of #ccje7;b7 of the ,federal ,unemployment ,tax ,act7 and inserting 7except as otherwise provided in this section1 section #ccjd7;a77#c7 of the ,internal ,revenue ,code of #aihf1 or any other provisions of ,federal unemployment compensation law74 7f7 ,application to ,federal payments ,when administering any ,federal program providing compensation 7as defined in section #ccjf of the ,internal ,revenue ,code of #aihf71 the ,state shall use the authority provided under subparagraphs 7,h7 and 7,i7 of section #ccjd7;a77#d7 of such ,code in the same manner as such authority is used with respect to the ,state unemployment compensation law4 ,with respect to improper ,federal payments recovered consistent with the authority under subparagraphs 7,h7 and 7,i7 of such section1 the ,state shall immediately deposit the same percentage of the recovered payments into the same ,state fund as provided in the ,state law implementing that section4 7g7 ,effective date ,the amendments made by this section shall apply to overpayments or payments or contributions 7or payments in lieu of contributions7 that are collected as a result of an investigation and assessment by the ,state agency after the end of the #b-year period beginning on the date of the enactment of this ,act1 except that nothing in this section shall be interpreted to prevent a ,state from amending its law before the end of the #b-year period beginning on the date of the enactment of this ,act4